Manistique Papers seeks court OK of bid procedures for asset sale

By Jim Witters

Wilmington, Del., Nov. 21 - Manistique Papers Inc. is seeking approval of proposed procedures for the sale of substantially all the company's assets, with no stalking horse bidder, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

A hearing on the bid procedures is scheduled for 3 p.m. ET on Dec. 13.

The primary asset of the company is its 500-ton-per-day recycled paper mill along the Manistique River in Manistique, Mich.

"Despite the absence of a completed stalking horse bidder at this time, it is critical that the debtor's sale process move forward and a sale of the debtor's assets conclude as quickly as possible," the documents state.

The proposed procedures maintain the ability to establish a stalking horse sale process, the documents state.

A hearing is scheduled for 3 p.m. ET on Jan. 17 to consider the mid-process selection of a stalking horse.

The deadline for submitting a stalking horse bid is Jan. 12.

The final bid deadline is Feb. 8, 2012. An auction is scheduled for 10 a.m. ET on Feb. 13. A sale hearing is scheduled for 2 p.m. ET on Feb. 16, 2012.

Any sale must close by Feb. 22, 2012.

Bids must be accompanied by a 10% deposit.

The minimum overbid must be $100,000 more than the stalking horse bid, if any, and include any stalking horse fees.

The DIP lender, mBank, is considered a qualified bidder and many submit a credit bid by Feb. 9, 2012.

Manistique Papers, a Manistique, Mich., recycled-fiber specialty paper producer, filed for bankruptcy on Aug. 12. Its Chapter 11 case number is 11-12562.

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